COMPACT LOGISTIC PRIVATE LIMITED,LUDHIANA vs. INCOME TAX OFFICER, LUDHIANA

Briefly the facts of the case are that the assessee has filed its return of income declaring total income of Rs. 22,840/- on 20/09/2014. The return of income was selected for scrutiny ad after issuing of requisite notice and calling for the information / documentation, the AO passed the order under section 143(3) dt. 28/12/2016 accepting the returned income. Thereafter, the Ld. Pr. CIT- 3, Ludhiana issuing a show cause under section 263 and thereafter, considering the written submissions filed by the assessee but not finding the same acceptable, vide order dated 27/03/2019, the assessment order was set aside to the file of the AO for passing a fresh order in accordance with the law in respect of matter connected with sundry creditors standing in the financial statements of the assessee company. Thereafter, the AO passed the order under section 143(3) r.w.s 263 dt. 25/12/2019 wherein the amount of Rs. 31,69,56,748/- was brought to tax in the hands of the assessee on account of amount standing credit in the financial statements in respect of various sundry creditors which remain unsubstantiated and unverified.

Against the aforesaid order passed by the AO u/s 143(3) r/w 263, the assessee moved in appeal before the Ld. CIT(A)-5, Ludhiana who vide impugned order dt. 19/04/2024 has dismissed the appeal of the assessee. Against the said order, the assessee is in appeal before us.

During the course of hearing, the Ld. AR submitted that the matter has been decided ex-parte qua the assessee and even on merits of the case, no findings has been recorded by the Ld. CIT(A). It was accordingly submitted that the assessee be allowed one more opportunity and matter may be set aside to the file of the Ld. CIT(A) to decide the same afresh after providing necessary opportunity to the assessee.

Per contra, the Ld. DR submitted that the assessee has been provided numbers of opportunities by the Ld. CIT(A) however there has been no compliance on the part of the Assessee resulting in passing of the ex-parte order. At the same time, it was further submitted that Revenue has no objection where the matter is set-aside to the file of the ld CIT(A) to decide the same on merits.

In his rejoinder, the ld AR submitted that the assessee had responded to the notices and moved the adjournment applications and sought time to submit the necessary information before the Ld. CIT(A) and our reference was drawn to the notice dt. 10/04/2024, wherein the matter was listed for hearing on 16/04/2024 in respect of which the assessee had moved an adjournment application and without allowing further opportunity to the assessee, the Ld. CIT(A) has passed the impugned order on 19/04/2024. It was further submitted that the assessee be allowed an opportunity to defend its case on merits and the prayer has accordingly been made to set aside the matter to the file of the Ld CIT(A).

After hearing both the parties and considering the material available on the record, we find that it is an admitted position that the case of the assessee has not been decided on the merits of the case and we therefore don’t have the benefit of the findings of the ld CIT(A) and accordingly, we deem it appropriate to set aside the matter to the file of the Ld. CIT(A) to decide the same afresh as per law by way of speaking order after providing reasonable opportunity to the assessee. Needless to say, the assessee shall attend to the proceedings and submit necessary information/documentation as so advised.

In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 12/07/2024 (JUSTICE (RETD.) C.V. BHADANG) ACCOUNTANT MEMBER

""यथ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File